tophatbingo| Hongde Fund: Market sentiment warmed up last week, and the sector is still rotating rapidly

Last weekTophatbingoIn the first quarter, US economic growth slowed but inflation rebounded, expectations of US interest rate cuts continued to swing back, US bond interest rates continued to strengthen, and the yen depreciated sharply. Against this backdrop, global capital flows have changed marginally, overseas funds have paid more attention to the Chinese market, the Hang Seng index has posted its biggest weekly gain since 2012, and the one-day net inflow of northbound funds hit an all-time high on Friday.

Last week, A-share market sentiment warmed up, trading volume rebounded, but the plate is still rotating fast. Gem, CSI 2000 and Kechuang 50 increased significantly, up 3% respectively.Tophatbingo.9%, 4.0% and 3.0%, computer, comprehensive finance, non-bank finance led the rise, and cyclical sectors such as coal and petroleum and petrochemical made more pullbacks. Hongde Fund said that with the end of the disclosure of annual and quarterly reports of listed companies at the end of April, the market will refocus on sectors and stocks where performance has improved significantly.

In the bond market, recently, the central bank has repeatedly focused on the risk of long-term bond yields, the bond yield curve has risen as a whole, and long-end interest rates have risen more. Yields on credit bonds go up with interest rates. The Hongde Fund said that the main factor is that the central bank once again spoke about the low yields on long-term bonds. Overall, central banks seem to take a longer view, while institutions are more subject to current allocation pressure, resulting in short-term differences between central banks and market institutions. In addition, the rebound in the equity market may also cause a disturbance to the bond market, and the follow-up need to pay attention to the statement of the Politburo meeting and the landing of the follow-up proactive fiscal policy.

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